About Me

My photo
Nazareth, Pa., United States

Thursday, November 19, 2015

Hotel Tax Grants Postponed Until January

Ken Kraft holds binder with $753,000 in hotel tax applications
Pursuant to state law, Northampton County collects a 4% hotel room rental tax from every hotel. That revenue must be used for tourism and community development. Over the years, between thirty or forty different groups like the Bach Choir, Celtic Classic and Historic Bethlehem Partnership have been awarded grants from Council as part of the budget process. They are rated by DCED, but Council has the final say. Except this year.

Earlier this year, DCED Director Diane Donaher, with no authority from Council took it upon herself to suspend a longstanding practice under which tourism grants were solicited by her department, rated and then presented to Council for a final vote as part of the budget. It's unclear whether she even had authority from Executive John Brown, who claimed there was a failure in communication.

She had told organizations like State Theatre and Kreidersville Covered Bridge not to bother submitting applications. Then she announced to a stunned Council on October 14 that she herself, instead of the people's elected representatives, would take control over the nearly $500,000 in hotel taxes used for this program.

Donaher explained that she was considering giving all or a large portion of it to the Northampton County Historical Society, and let it decide how the money should be spent. "We're looking at changing the process," she said.

Council was outraged, and Executive John Brown reversed her a few days later. But thanks to the delay imposed unilaterally by Donaher, none of them will be seeing any grant money this year.

Before Council's Finance Committee met on November 19, Donaher dropped off a thick binder for each Council member, full of grant applications for $753,000 from a total of $496,000. None of the applications has been rated or vetted, as has been done in past years.

The implicit message, at least to Ken Kraft was "Do it yourself!"

"I'd like to throw it at her," Kraft said of the binder. "She's not doing her job with her bloated staff. They want us to sit here and do their job. This is nonsense. This is passive aggressive."

Brown tried defending Donaher, claiming there was "no intent to remove hotel taxes from your purview." But he admitted, We missed the mark. I own that. I take full responsibility."

"I don't think it's doable," said Hayden Phillips as he looked through the thick binder. He suggested that the awards be postponed until January, to give Council time to review them. In the meantime, Brown assured Council that the DCED would rate the applications, as has been done in previous years.

30 comments:

Anonymous said...

Lesson: If it works good don`t fix it!

Anonymous said...

Corporate efficiency strikes again.

Anonymous said...

This is what you get when you govern by consultants instead of listening to the people who know the real issues and where the money is needed the most. Brown has nowhere to hide. He has now drug this out beyond the elections and is hoping his new friends on council will bail him out of trouble. Good luck with that thought Johnny boy.

Anonymous said...

She needs to present this to this years council, this is not even remotely fair to parsons or McClure who are responsible for that part of the budget. Now you will add two yes men to the equation for brown, you may as well kiss this grant goodbye if your an applicant.

Bernie O'Hare said...

Since there are $750,000 worth of applications for a $496,000 pool, some of the applications may be in danger. DCED obviously turned up its nose at them earlier in the year, when it decided that it wanted to go in another direction. But I do not like seeing Donaher with that kind of poer. She has already abused too much power.

Anonymous said...

She might be right on one thing--Council would probably do a better job or screening the applications. I wouldn't trust her or anyone in her department to evaluate anything considering what they have done so far.

Bernie O'Hare said...

Agreed.

Anonymous said...

You mean the Finance Committee meeting on November 18.

Donaher has to go. She has engaged in power grabs since Brown hired her. She has a huge ego that was stroked when Council fawned over her for the first year. She interpreted this to mean that she had the authority to do whatever she wanted. She filled position after position during times when other departments where unable to hire. Her bloated staff has accomplished NOTHING. No jobs created or even facilitated. Their big press release this year was to announce a grant to a LEHIGH COUNTY business to recycle latex paint. Then Donaher unilaterally changed the hotel tax grant process. Now, in a hissy fit she dumps the applications on Council presumably because her bloated staff is too busy. That is outrageous! And, she is trying to force her way on the Gaming Authority as its administrator when Karen Collis has been performing that job admirably for the past several years. Donaher, the voice-over artist and former darling of Council is now another Brown liability. Kraft should do what he did years ago and introduce an amendment to the Brown budget eliminating Donaher's position.

Bernie O'Hare said...

Although I completely agree that Donaher has been absolutely awful, she is a member of Brown's cabinet and council really has no authority to eliminate her position. I would argue they have no authority to even interfere with her salary. If Brown wants to continue falling in the sword for her, that's on him.

Anonymous said...

Who sets policy in Northampton County? Isn't it the Council?

It would seem like this whole situation can be easily corrected if Council passes an ordinance that clearly spells out the Hotel Tax grant process, including the role of the Administration.

If that's done, or if it already exists, then there shouldn't be any question for this year or going forward.

Anonymous said...

This has been a fiasco. Brown is falling on a sword that Donaher sharpened up for him. All he can say is that there was a "miscommunication", which is code that he and/or Donaher screwed up. Kraft was right to point out that DCED has a lot of nerve dumping a 5" binder full of hotel tax applications on council member's desks when council approved FOUR NEW POSITIONS to their staff. What the hell are those employees doing?? Since it was HER blunder that caused this mess, Donaher should have taken full responsibility and as a LEADER called upon all staff to review the applications and to meet as a group, with a council rep, and submit recommendations to council for approval this year. Now, it appears as thought the grant awards will not be made until January at the earliest. All because Donaher and her massive ego tried to circumvent previous procedures and does not have the integrity to make things right.

Bernie O'Hare said...

10:25, Much of the policy is set by Executive. Some of the policy is set by Council, which could formalize the review process. It should not need an ordinance. Neither Donaher nor the Exec should alter long standing practices without first informing Council of their intentions. In this case, Donaher was actually trying to remove Council control. Now she is trying to make them do everything.

Anonymous said...

I'm a Republican, but good for Kraft.

Anonymous said...

Brown and his band of clueless morons need to be shown the door as soon as possible. This guy has been a total disaster, and things are getting worse, not better.

Anonymous said...

How many days till the next executive election in Northampton County? Sure will enjoy seeing the door hit each current administration department head on the ass & on their way out!

Not soon enough...

Anonymous said...

720 days until they are voted out. And I mean the 5 at large councilman and the 1 brown stain executive.

Anonymous said...

Anon 3:04, you are funny. The Republicans will sweep again in 2017. The Democrats lead by McClure or McClueless will go down worse than the Callahan clan.

Anonymous said...

If McClure runs for executive the Dem's have real problems. He is the best they have?? Couldn't even win his own district. That assures Brown and company four more years.

Bernie O'Hare said...

McClure never lost his district. He did not win by much, but has been elected twice. Cusick barely defeated Lori Vargo Heffner in her first bid for public office. Had he run, I believe Lamont would have clobbered Cusick. As for the Exec race, Brown was an unknown in his first race. He has now been defined. On top of that, he is going to be traipsing all over the state next year in a run for Auditor General, which he will lose. So I believe Brown is a one-term Exec, especially if either of three Democrats being courted decide to run.

Anonymous said...

Who are the three being courted?

Bernie O'Hare said...

You'll find out when you find out.

Anonymous said...

Sorry Bernie but Seyfried is only be courted in his own mind, Stoffa is too old and Panto is not running for county executive.

Anonymous said...

Some Dem's have said that Kraft is blowing his horn on this but there are some issues. he is a union rep, with no real managerial experience or education. That could be hard sell to voters after the Brown debacle. Some old Callahan lieutenants have been thrown out there but the Callahan clan members are still not going to do well in Bethlehem,

So far every reliable source claims there is no real viable or tested candidatess emerging, just people who want to run. Actually the word is there are about five or six Democrats weighing a run.

Bernie O'Hare said...

You'll find out when you find out.

Anonymous said...

Some republicans already know the people who are planning to run for the Dem. county executive. I doubt any are your favorites. One plans to self finance and run without the blessing of the party elites.

Bernie O'Hare said...

You'll find out when you find out.

Pay your judgment.

Anonymous said...

I know of two people planning to run. Neither our Party favorites. Should be interesting.

Anonymous said...

Rich Grucela will be the next executive. You heard it here first!

Anonymous said...

"Rich Grucela will be the next executive. You heard it here first!"

Now that is funny!

Anonymous said...

Rich Grucela???

Why not Marty Bechtel or Gene Hartzell. The Democrats the party of Dinosaurs.